CNBC’s Jim Cramer told investors he’s pleased with Google parent Alphabet‘s most recent quarter, lauding the company’s proof of profitability.
Cramer added that it underscores why his CNBC Investing Club Charitable Trust owns Alphabet, saying he’d buy the stock on a dip.
“This whole conference call was what I call a master class of transparency and health,” he said. “It made me feel great that we own this one for the charitable trust,” adding that he’d be a buyer if the stock “pulls back big.”
Cramer said he had been concerned about how generative artificial intelligence could hurt Alphabet’s search business — its “bread and butter.” But after listening to the company’s conference call, Cramer was convinced that AI is helping search, which in turn helps advertising revenue.
According to Cramer, another reason for Alphabet optimism is the success of its cloud business, which he noted boasts clients like Mercedes-Benz, Cintas and Walmart. He added that he’s happy with another arm of the business, YouTube, saying it’s a big positive in the company’s ad revenue growth. Cramer also referenced Alphabet’s conference call itself, in which management said it expects “YouTube overall and Cloud to exit 2024 at a combined annual rate of over $100 billion.”
“With Alphabet, the profitability and the transparency gave us comfort that the AI payoff will be immediate, and they clearly needed to spend a lot just to meet new customer demand,” Cramer said. “We always want companies to spend more to keep their customers happy.”
Alphabet did not immediately respond to a request for comment.
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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Alphabet.
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